Article ID Journal Published Year Pages File Type
5128488 Operations Research Letters 2017 4 Pages PDF
Abstract

We develop a model to examine the link formation and the stability of networks in a Hotelling-type oligopoly. We find that with two firms, the link formation depends on the degree of vertical differentiation regardless of the degree of horizontal differentiation, while, with a greater number of firms, link formation occurs when firms feature high horizontal differentiation but low vertical differentiation.

Keywords
Related Topics
Physical Sciences and Engineering Mathematics Discrete Mathematics and Combinatorics
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A note on link formation and network stability in a Hotelling game
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